Peter Schiff: “Upcoming Fed rate cuts are a HUGE mistake”
He publicy predicted 2008 crisis and made $70M
Now he warns it'll spark inflation and crash markets
Here’s what it means for crypto and what's next
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❒ Everyone's waiting for the cuts - the first drop is just two days away, bullish
❒ Stocks are at their peak,
$BTC and GLD are rising - all assets are hitting new records
❒ But Schiff says: “It’s exactly at times like this that everything crashes”
❒ In 2000 and 2008, rate cuts came - and crashes followed immediately
❒ This is important: when cuts happened at ATH, markets could still rise
❒ But not for long, after which they lost dozens of percent. Why
❒ Because cuts fuel the bubble’s last sprint before it bursts
❒ And this “celebratory” rally always ended with a crash
❒ In 2025 the situation is even worse
- Stock valuations are higher than before the dotcom crash
- S&P is 35% above the spring low
- Nasdaq is at an all-time high
- Crypto isn’t lagging either
❒ And all this - against the backdrop of inflation that hasn’t faded, but stabilized above 3%
❒ Cutting rates in a hot economy is a rare move
❒ In 2024 US GDP grew over 3%, consumption didn’t fall, indexes hit records
❒ Previously the Fed only cut rates during crisis phases - now it’s the opposite
❒ This isn’t “market support”, this is - an attempt to buy time before something worse
❒ Core CPI is 3.1%, which is 110 bps above the Fed’s target
❒ The rate will be cut to 4.00-4.25%, meaning - real yield turns negative
❒ It was exactly this kind of policy in the 70s that triggered the second, stronger wave of inflation
❒ Schiff says: “This will be a melt-up - first prices, then trust, then everything else”
❒ And the market already feels it
- Silver broke $42 - for the first time since 2011
- Gold is also preparing to hit a new ATH
- And BTC desn’t drop on news - it absorbs them
❒ Schiff: “This is a clear signal they’re cutting rates at the worst possible moment”
❒ Add to this a weaker labor market and the puzzle completes
❒ The “Jobs are plentiful” index dropped to 33.4 - the lowest since 2021
❒ In 2 years the figure has fallen by 22 points - the labor force is losing confidence
❒ So the market isn’t broken yet, but it’s cracking - and the Fed knows it
❒ Markets are pumped by profit, AI narratives and fear of missing another 20% up
❒ S&P is up +35% in 5 months which is one of the strongest rallies in history
❒ But all of this happened before the cut, not after it
❒ In 2000, 2008 and 2020 markets rose right before the crash
❒ But this isn’t 2008
❒ We have an asset that isn’t tied to the central bank balance sheet
❒ BTC is already at $110K and looks more resilient than everything around
❒ Whales are accumulating, ETFs are buying and retail is still scared - and that’s the perfect balance
❒ Next up - $ETH,
$SOL , $XRP: mid-caps that haven’t taken off yet
❒ Altseason Index is only approaching 80 - the launch zone, not the finale
❒ Yes, rate cuts might cause short dips, the market always readjusts painfully
❒ But long-term + a series of cuts = guaranteed upside
❒ Schiff is only partly right - cash and passivity are getting devalued again
❒ But assets that absorb liquidity win from every cut
❒ If everything used to flow into Nasdaq, now a large share is pouring into BTC and crypto
❒ This isn’t a repeat of 2008 - it’s a new cycle, with a different power center
#StrategyBTCPurchase #BNBBreaksATH #BinanceHODLerZKC #SummerOfSolana? #SummerOfSolana? $SOL $BTC